Hong Kong-based CK Hutchison is threatening to take legal action against AP Moller-Maersk if the Danish shipping company moves forward with plans to have its APM Terminals unit temporarily assume control over a pair of disputed ports at the Panama Canal.

According to the Associated Press, CK Hutchison has warned that handing control of the ports to APM Terminals would prompt legal recourse, and claimed that any forced takeover would cause harm and disrupt trade through the critical waterway. The Hong Kong firm also said that it was planning to take further steps to protect its rights and interests at the two ports situated at either end of the Panama Canal. 

This comes after a decision from Panama's Supreme Court in late January that ruled CK Hutchison's contract to operate the two ports unconstitutional. The ruling effectively voided the company’s long-standing concession to operate the Balboa and Cristobal terminals, setting the stage for a potential legal showdown between the port operator, the Panamanian government and Maersk’s terminal arm, APM. Following the court's ruling, China also warned that Central America would pay a "heavy price" if it fails to change course.

CK Hutchison was initially expected to sell the two ports to a consortium led by U.S. investment firm BlackRock, before the Chinese government intervened to block the deal. The collapse of that sale further complicated the situation, leaving Panama’s government to decide on a new operator for the strategically located terminals in the face of ongoing pressure from the Trump administration. Over the last year, President Donald Trump has frequently claimed that CK Hutchison's control of the two ports represents a threat to U.S. interests at the canal. While APM Terminals is headquartered in The Hague, Netherlands, it is a unit of Danish shipping company Maersk's Transport and Logistics division.

Relations between Denmark and the U.S. have been strained by Trump's highly publicized threats to wrest sovereignty of the Danish-owned island of Greenland, by force if necessary. Last month, according to The New York Times, Prime Minister Mette Frederiksen of Denmark said the debacle — in which Mr. Trump mused about using economic or military force to take ownership of Greenland from Denmark, then abruptly announced a “framework” agreement over the island with the secretary general of NATO — showed that “the old world order is now gone.”

Although Panamanian President José Raúl Mulino had previously vowed to keep the two ports operating as usual as the legal battle played out, CK Hutchison said on February 12 that continued operations will "depend solely on the actions of the Panama Supreme Court and the Panamanian state." In the meantime, the company vowed to explore all available avenues to retain control over the disputed ports. In a statement to the AP, APM Terminals said that it's not involved in the day-to-day legal process of the dispute, and that it has only voiced a willingness to Panama's government to temporarily operate the port to maintain stability in the region.